International cooperation leads to HSE improvement in the High North

The Barents Sea, which lies in the Arctic north of Russia and Norway, has been the site of industrial activities for years, primarily fishing and shipping, but more recently to petroleum exploration. While the opportunities in the region are vast, so are the challenges. The extreme climate poses constant hazards to people and operations, and with industrial activities expected to increase in the years to come, the Barents Sea’s fragile ecosystems could come under greater strain.

Rules for success
The need to enforce and implement adequate and comprehensive rules and standards for HSE in the Barents Sea is urgent. This is what prompted the Norwegian government to initiate a DNV-led project to safeguard petroleum activities in this fragile yet resource-rich area of the High North.

The intertwined challenges of energy scarcity and climate change have pushed the question of a sustainable development of the Barents Sea to the top of the global agenda. Two years ago, Norwegian Minister of Foreign Affairs Jonas Gahr Støre initiated a Russia-Norway cooperation project aimed at safeguarding petroleum activities in the Barents Sea. Støre asked DNV to take the lead.

In a recent interview, Støre discussed the project with DNV. “The harmonization project was initiated as part of the Norwegian government’s High North policy,” he said. “Knowledge is at the core of the High North policy and is closely linked to environmental management, utilization of resources, and value creation. As a nation, we need more knowledge in order to fully seize the opportunities ahead and meet the challenges we are facing in the High North.”

For Støre, one of the important aspects of the Barents 2020 program has been the establishment of close cross-border cooperation among authorities, private enterprise, and social partners in Russia and Norway.

“When we launched the High North Strategy in 2006, we announced that we wanted to initiate more knowledge generation and development projects within the framework of the Barents 2020 program, which is managed by the Ministry of Foreign Affairs. Russia, energy, and climate change are all key areas of the strategy. We particularly wanted to develop Norwegian-Russian cooperation on health, safety, and environmental issues involving authorities, industry, and social partners in both countries,” he said.

And while the cooperation with Russia was a fundamental prerequisite for the project, other parties have increasingly shown interest as well.

“The intention of the project was to develop closer cooperation with Russia on sound exploitation of the petroleum resources in the Barents Sea,” Støre said. “We have since seen that many more parties than we had expected have been interested in the project, including partners from third-party countries. It has become a veritable showcase for our High North policy.”

A win-win situation
As cross-border cooperation has flourished, the harmonization project has brought together two sets of unique experiences: Russian expertise with regard to cold climate operations and Norwegian expertise in offshore operations.

Støre explained, “One of the main objectives of the government’s High North policy is to strengthen our cooperation with Russia. I think that, in general, projects that involve sharing knowledge across borders lead to a win-win situation. In this case, both parties have substantial but somewhat different knowledge. I believe that there will be an important exchange of knowledge that will make both parties better equipped to meet the opportunities and challenges ahead as we continue to develop the immense energy resources in the Barents Sea.”

According to the minister, the project strikes at the very core of the bilateral relations between Russia and Norway.
“Our relations with Russia are a central dimension of Norway’s High North Policy. Russia is our neighbor and the country with which we share the Barents Sea,” he said. “The management of our respective resources in the Barents Sea will always be at the heart of our cooperation. The harmonization of HSE standards for petroleum activities in the Barents Sea is one of many steps we need to take to ensure sustainable development of our energy resources in the area.”

The way forward
In the end, what matters is whether the recommended standards are made mandatory for anyone seeking to operate in the Barents Sea. With regard to whether or not the final recommendations will be taken into account in future exploration and production activities in the Barents Sea, Støre admits that the harmonized standards are only one step in the process.

“I believe this is the first important step of many that we need to take to make sure that future exploration and production activities in the Barents Sea are carried out in a sustainable manner on both sides of the border. I find this bottom-up approach interesting. By bringing the industrial actors together, we will be able to ensure that the guidelines are viable for the industry. We do, however, have some way to go before we reach the stage where the guidelines can be made mandatory. Now it’s necessary for the authorities to reach agreement. But I believe that a sound basis for future implementation has been laid down by this important project.”

Barents 2020 safeguards the sea With the knowledge that oil and gas exploration, production, and transportation will increase in the Barents Sea in the years to come, authorities and industry in Russia and Norway have recognized the unique challenges they face. The Barents Sea presents a harsh environment with low temperatures, harsh weather, ice, icing, darkness, lack of infrastructure, and special need to protect the environment. A Russian-Norwegian cooperation project, Barents 2020, was launched in early 2008 with the objective of recommending standards for safeguarding people, the environment, and assets in Russian and Norwegian waters. Phases one and two of the project were financed by the Norwegian government through the Barents 2020 program. From the outset, a working assumption was that operations in the Barents Sea should be at least as safe as those in the North Sea. A thorough process of research, prepared position papers, workshops, conferences, and negotiations led to seven topics for further study in Phase 3 in 2009: 1. Recommend the basic list of internationally recognized standards for use in the Barents Sea. 2. Recommend standards for design of stationary offshore units against ice loads in the Barents Sea. 3. Recommend standards for risk management of major hazards – fires, explosions, and blowouts – on offshore drilling, production, and storage units operating in the Barents Sea. 4. Recommend standards for evacuation and rescue of people from ships and offshore units, including standards for rescue equipment under various Barents Sea conditions. 5. Recommend standards for the working environment and safety related to human performance and decision making (human factors) for operations in the Barents Sea. 6. Recommend safe standards for loading, unloading, and transportation of oil with ships in the Barents Sea to minimize risk of accidental oil spills. 7. Recommend standards for operational emissions and discharges to air and water in the Barents Sea. The topics were studied by seven specially appointed Russian and Norwegian expert groups comprising more than 100 members. The final report, based on findings reported at a conference in Moscow in December 2009, will be evaluated by relevant national authorities and standardization organizations for their consideration. As project manager, Erling Sæbø has been in charge on behalf of DNV since the inception of the project. He is optimistic about the project and its staff. “We have an excellent team of experts onboard, and the work is progressing very well. I feel certain that the final recommendations will have a real impact, not least because of the high level of technical and scientific insight and the credibility of the scientists involved.” The final report, which provides recommendations for the use of international industry standards in Russian and Norwegian waters, was approved by the project steering committee in March 2010. The report has been sent to industry, public, and standardization organizations in Norway, Russia, and internationally. It is offered as guidance for operators, contractors, and manufacturers that will be involved in oil and gas activities in the Barents Sea. In total, 130 recognized industry standards have been assessed. While half of them may be used in the Barents Sea as they are, amendments are recommended for the other half to maintain an acceptable safety level.